CAE manufactures flight simulators and operates pilot training centers for commercial airlines, business jet operators, and military forces. The company operates through two segments: Civil Aviation and Defense and Security. Civil Aviation produces high-fidelity full-flight simulators and manages a global network of training centers. This segment generates recurring revenue because pilots must complete legally mandated training at regular intervals to maintain certifications. Defense and Security provides simulation, mission rehearsal, and integrated training programs for global militaries, often through long-duration sustainment contracts. CAE’s business model balances one-time capital equipment sales with annuity-like training services. The company is currently executing a transformation plan to improve asset utilization and profitability. This strategy includes rationalizing its portfolio by exploring the sale of its Flightscape software business and rightsizing the civil training network by retiring underutilized simulators and closing several centers. CAE is also consolidating its ERP systems and improving labor productivity to reduce costs. In the defense market, CAE focuses on partnering with original equipment manufacturers to secure long-term training programs supported by rising government defense spending.